[globalts]

If you pawn a title, and the title is no good, therefore the title loan company cannot lien the vehicle title, what course of action does the company have since they cannot legally repossess the vehicle, if you cannot pay the loan?

[JudyKayTee]

If you pawn a title, and the title is no good, therefore the title loan company cannot lein the vehicle title, what course of action does the company have since they cannot legally repossess the vehicle, if you cannot pay the loan?

It's somewhat different by State - what State?

The sites I searched indicate that it is a crime to pawn a vehicle with a bad title and that the title is checked.

[progunr]

Yes, this can be considered a criminal act in some jurisdictions, Judy is correct.

Even if not a crime where you live, they can certainly sue you for default of the loan.

If they win a judgment, then they can come after your bank accounts, wages from employment, and can levy personal property to satisfy the judgment.

[globalts]

The state is Georgia, and fortunately this is not my problem, but another family member's. The title was valid when the title loan was made, however, the person filed for a replacement title before the title loan company could file a lien.

I know there is no recourse for reposession of the vehicle in question, but is considered criminal, civil, or what?

[progunr]

I would say that is a clear case of Fraud, and OBVIOUSLY AND CERTAINLY, a crime.

[globalts]

I already informed this individual of the seriousness of the possibility of financial transaction fraud, possible theft by deception if the loan isn't paid, as well as civil liability for the loan amount in its entirety. Did I miss anything?

What is the reprocussion if the person sells the vehicle with the good replacement title showing no leins?

Does the title loan now become an unsecured loan? If the person defaults on the loan, what action will the title loan take?

[Fr_Chuck]

If they provided a original title, that is actually still the valid title,
Their new title would be the forged or illegally gotten title, and anything they did after that would be illegal, The title company could still repo the vechile, using the paper work they have, If they sold the car to someone else that sale would be illegal and they could be charged with theft by deception and other charges depending on the state

[ScottGem]

Something doesn't sound right here. A title is registered with the state. Any liens on the title should also be registered with the state. Getting a replacement title shouldn't change anything. The title loan company should still be able to file a lien against the car.

[Fr_Chuck]

Yes, most title loan places don't actually even place a lien against the car unless the people don't pay, they basically hold the title in a safe and if and when you pay them back, they hand your title back to you.

So they are holding the legal title to the car, the new replacement would be the fraud or fake one, since they had to lie to get it, So what ever they do with that new title ( like sell it to someone) would not hold up in court.

[globalts]

Thanks for all the replies.
I have found out that the title loan place tried to file a lien against the original title, and whoever they talked to at the state level told them that that was no good, a replacement title was in effect and the title loan company could not place the lien unless the vehicle owner took the replacement title to them.

The title company tried to have the replacement title sent to their office, but the state said it could only be mailed to the owner of the vehicle at the owners address. The title company then called the family member to tell them to bring the new title to them, but I don't think the person will.

I think the person will either try to sell the vehicle, or try something crazy like pawning the new title with another title company. I see a lot of trouble in the future when the first title loan payment is due, and then the second title loan payment comes due(if they actually do it again), and then two title companies looking to repossess the same vehicle.

Any ideas?

[Fr_Chuck]

Yes, if this is not you, stay out of it, stay as far away from this person as you can, I see the title company pressing criminal charges against the person if they are not paid shortly. Depending on the state, theft by deception comes to mind, fraud on a loan document, perhaps even theft,
So if this is a close person, saving up bail money may come to mind